Twilio price target raised to $70 from $60 at Wells Fargo

Wells Fargo raised the firm’s price target on Twilio to $70 from $60 and keeps an Equal Weight rating on the shares following headlines last week around activist involvement. The firm says that running the comms biz for more margin is sensible, but thinks the next phase is more difficult and that Twilio’s gross margin profile makes attracting a value-based investor also tough. As a result, the firm believes shares are most likely stuck until either macro or management changes surface.